Nebraska Dyed Diesel 
                           Penalty Assessments
      This guidance document is advisory in nature but 
      is binding on the Nebraska Department of Revenue 
      (Department) until amended. A guidance document 
      does not include internal procedural documents that 
      only affect the internal operations of the Department and 
      does not impose additional requirements or penalties 
      on regulated parties or include confidential information 
      or rules and regulations made in accordance with the 
      Administrative Procedure Act. If you believe that this 
      guidance document imposes additional requirements 
      or penalties on regulated parties, you may request a 
      review of the document. 
      Diesel fuel that is untaxed and intended solely for non-
      highway purposes contains red dye. Using dyed diesel 
      fuel in a motor vehicle that is registered, or required 
      to be registered for operation on the highway, subjects 
      the registered owner of the motor vehicle to a penalty.
      Any  law  enforcement  officer,  carrier  enforcement 
      officer,  or  any  agent  of  the  Department  who  has 
      reasonable grounds to suspect a violation of this  
      law, may inspect the fuel in the fuel supply tank of  
      any motor vehicle to determine compliance. Fuel 
      inspections may also be conducted in the course of 
      safety or other inspections.
      Any person who violates any provision of this law or 
      who refuses to permit an inspection shall be guilty 
      of a Class IV misdemeanor and shall be subject to 
      a penalty. The amount of the penalty ranges from 
      $250 to $2,500 depending upon the existence of  
      previous violations.
      The sample of fuel taken from this motor vehicle 
      will be tested for the presence of red dye. If red dye 
      is detected in the sample, a penalty will be assessed. 
      The penalty assessment will be in the form of a letter 
      issued by the Department. It will explain your options 
      for payment or appeal and the time frames you must 
      follow. No action regarding this penalty is required on 
      your part until this letter is received.
      You may be subject to an additional federal penalty. 
      The results of this test will be shared with the IRS who 
      may issue a separate penalty against you. This federal 
      penalty, if issued, is separate and distinct from the 
      state penalty and must be treated accordingly.
      If you have any questions regarding the Nebraska 
      penalty, please contact the person designated in the 
      letter you receive in the mail.
              3-460-1997 Rev. 12-2016 Supersedes 3-460-1997 Rev. 11-2009